NEPZA to unions: Free trade zone law bars strike against new company for 10 years

The Nigeria Export Processing Zones Authority (NEPZA) says its law enforces a 10-year prohibition on industrial strikes and lockouts within free trade zones (FTZs), including the Dangote refinery.

According to NAN, Olufemi Ogunyemi, NEPZA’s managing director, in a statement on Thursday, noted that the provision was designed to protect industrial harmony and ensure investment stability.

Ogunyemi’s comment followed the recent disruption of operations at the Dangote refinery by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

The union, on September 28, commenced a nationwide strike by shutting down critical facilities, after accusing Dangote refinery of sacking over 800 workers who joined PENGASSAN.

However, the refinery said it only disengaged a few workers accused of sabotage, describing the move as part of an internal reorganisation.

On October 1, PENGASSAN suspended the industrial action.

Ogunyemi expressed concern over what he described as “frequent and excessive external union infiltrations” in the free zones, warning that such actions threaten the stability and competitiveness of businesses operating under the FTZ framework.

He said the NEPZA Act provides a clear legal basis for the 10-year ban on strikes and lockouts from the commencement of operations within any zone.

“Section 18(5) of the NEPZA Act states that there shall be no strikes or lock-outs for a period of ten years following the commencement of operations within a zone,” the MD said.

“And the authority shall resolve any trade dispute arising within a zone.”

Ogunyemi clarified that the law does not deny workers their rights to form or join trade unions or engage in collective bargaining but channels dispute resolution through NEPZA.

“We are pleased that the conflict has been de-escalated. Dangote Refinery is a declared Free Trade Zone benefiting from tax incentives and customs waivers designed to strengthen the economy, and NEPZA regulates it,” he added.

The MD said Nigeria’s free zone scheme, which has operated for more than 30 years, was created to attract investment and drive industrialisation in line with global best practices.

He said NEPZA runs a one-stop-shop administrative model to fast-track processes and resolve disputes internally.

OGUNYEMI ASKS UNION TO DIRECT CONCERNS THROUGH NEPZA

Ogunyemi urged trade unions to direct their concerns through the authority rather than external confrontation.

“The NEPZA Act requires all stakeholders including government agencies, investors, and corporate entities to respect the Authority’s one-stop-shop status in overseeing the scheme,” the NEPZA boss said.

“The Section 24(1) of the Act restricts the application of external laws within the zones. Any law from the customs territory can only apply in the Free Zones if it is not inconsistent with the NEPZA Act.

“Consequently, in cases of conflict between the Trade Unions Act or the Trade Disputes Act and Section 18(5), the provisions of Section 18(5) take precedence as the more specific regulation governing Free Zones.”

Ogunyemi also commended President Bola Tinubu for his “swift intervention” in resolving the refinery dispute, describing it as a demonstration of leadership and commitment to protecting national assets.

The MD said while labour-related issues are inevitable in an industrial economy, resolving them lawfully and promptly is crucial for maintaining investor confidence and sustaining industrial growth.